|Where is CNOOC Limited listed and what is its stock code?|
● CNOOC Limited is listed on three stock exchanges.
● The Company’s common stock is traded on the Hong Kong Stock Exchange under the stock code 00883.
● CNOOC Limited’s American Depositary Receipts（ADRs） are traded on the New York Stock Exchange and the Toronto Stock Exchange
under the stock codes CEO and CNU, respectively.
|What is CNOOC Limited’s core business and where are its assets distributed?|
● CNOOC Limited is China’s largest offshore crude oil and natural gas producer and is also one of the world’s largest independent oil
and gas exploration and production companies. It is principally engaged in the exploration, development, production and sale of oil and
● The Company’s core operation areas are Bohai, the Western South China Sea, Eastern South China Sea and East China Sea in offshore
China. The Company also has oil and gas assets in Asia, Africa, North America, South America, Oceania and Europe.
|What is the relationship between CNOOC Limited and its parent company China National Offshore Oil Corporation?|
● China National Offshore Oil Corporation is the Company’s largest shareholder. It currently holds approximately 64.44% of the Company’s
|What is the composition of CNOOC Limited Board of Directors?|
● CNOOC Limited’s Board currently consists of 8 members, including two executive directors, two non-executive directors and four
independent non-executive directors.
|What is CNOOC Limited’s credit rating?|
|● Standard & Poor’s has issued a credit rating of A+ for CNOOC Limited, while Moody’s has issued a credit rating of Aa3.|
|What is CNOOC Limited’s vision in terms of social responsibility?|
CNOOC Limited strives to become:
● The driving force in sustainable energy supply
● The leader in promoting clean, healthy and environmentally friendly business development
● The motivating force in promoting social progress together with various stakeholders
|What is CNOOC Limited’s dividend policy?|
● The Company will continue to follow the established dividend policy, and constantly focus on shareholder return. Our dividend
distribution will continue to consider factors such as current and future earnings, financial condition, capital expenditure plans and
business development progress;
● At the same time, we will benchmark international peers’ dividend payment.
|Operation and Finance：|
|Under the current low oil price environment, has the Company changed its operating strategy in 2016?|
● In 2016, the Company will continue to adjust its operating strategy to manage effectively under the current low oil price environment, which includes:
○ Maintain prudent financial policy;
○ Continue to lower costs and increase efficiency through innovation in technology and management;
○ Ensure safe operation and strict compliance with regulations; and
○ Focus on return by balancing short-term benefit and long-term development.
|In the current low oil price environment, the Company has achieved effective cost control in the first half of 2016. Will there be room for further cost reductions in the second half of the year and in the future?|
● The Company has achieved remarkable results in lowering costs and enhancing efficiency since the “Year of Quality and Efficiency”
program was launched in 2014. The Company’s all-in cost decreased from US$45.02 per BOE in 2013 to US$34.84 per BOE in the first half
of 2016, representing a cost decline for a third consecutive year. Operating expenses decreased significantly in the first half of 2016
by 22.7% YoY to US$7.42 per BOE, lower than that of many of the Company’s international peers.
● In the past three and half years, a lot of measures have been taken by the Company to control cost and enhance efficiency. The culture
and philosophy of cost control and efficiency enhancement have been established and reinforced, with high importance attached to returns.
The Company has made great efforts to enhance the integration of exploration and development, promote regional development,
and further strengthen streamlined operation management. The Company has changed its performance review system, advanced its operational
efficiency, control cost from the origin of project design, and improve efficiency through overall resource planning.
● Cost control will remain the focus of the Company and various measures will be continued to lower cost and enhance efficiency.
|What is the Company’s 2016 Capex budget? Will the Company make further adjustments?|
● The Company’s 2016 Capex will be no more than RMB60.0 billion. In the first half of the year, the Company’s Capex was
RMB22.0 billion, representing a 33% decrease YoY. This reflects the Company’s effective response to the low oil price environment,
and is also in line with the common strategies of its international peers.
● The Company will maintain a flexible Capex plan to cope with future fluctuations in the oil price.
|Will the reduction of Capex have an impact on the exploration activities and future reserve replacement?|
● The Company attaches great importance to exploration and to reserve growth. In prior years, exploration Capex represented approximately
20% of total Capex, which is at the high end compared to our international peers.
● In spite of a sharp decline in Capex since 2015, we continued our efforts in cost control and maintained an equally intensive exploration program
to support sustainable development in the mid-to-long term.
● In the first half of 2016, the Company made steady progress in exploration with six new discoveries.
|How many new projects will commence production in 2016? How will the new projects in 2016 and 2017 contribute to the production growth?|
● So far, the four projects scheduled to come on stream in 2016 have all commenced production: Kenli 10-4 oilfield, Panyu 11-5 oilfield,
Weizhou 6-9/6-10 10 comprehensive adjustment project and Enping 18-1 oilfield.
● Currently, nearly 20 projects are under construction and are expected to contribute to our production growth.
|What was the assets impairment for the first half of 2016 mainly attributable to? Will there be further assets impairment?|
● The impairment loss in the first half of 2016 was approximately RMB10.4 billion. This was mainly related to fields in North America,
Europe and Africa, primarily due to the revision of the estimation for the oil price forecast and the adjustment in the operating plan
for oil sand assets in Canada.
● The Company will strictly comply with IFRS, and conduct impairment test on assets with indication of impairment.
|Will the Company conduct overseas M&A under the current oil price environment? Which areas is the Company interested in? Has the Company found good M&A opportunities?|
● The Company has always followed the established strategy of value-driven acquisitions and reviews the opportunities from
three aspects, namely the 3R (Resources, Return and Risk).
● After years of overseas development, CNOOC Limited has basically completed the global deployment of assets.
● In future, the Company will focus on the organic development of overseas assets and continue to optimize its portfolio.
|What is CNOOC Limited’s opinion on the reform of compensation policies?|
● We have taken note of the relevant reform plans.
● The Company has formulated fair and competitive compensation policies after taking into account the industry standard and current